Americans love Halloween. It’s easy to see, just drive down the street. There are Halloween decorations everywhere!

According to the National Retail Federation’s annual survey, more than 171 million of us plan to celebrate All Hallows’ Evening, aka Halloween, this year with total spending expected to reach an all-time high of $8.4 billion! That’s 1.5 billion dollars more than we spent last year. Sounds crazy doesn’t it?

Almost $6 billion will be spent on the 3 ‘c’s of Halloween: costumes ($3.1 billion) candy ($2.5 billion) and cards ($390 million). The remaining $2.4 billion will be spent on decorations.

As spooky as these spending statistics sound, we need to keep some perspective. Did you know Halloween doesn’t even make the list of top 5 when it comes to holiday spending?

Christmas (winter holidays)

Mother’s Day

Valentine’s Day

Easter

Father’s Day

As long as we are counting, Halloween isn’t even number six. According to the NRF we spend more on the Super Bowl than we do on Halloween. Even though Super Bowl Sunday isn’t actually a holiday, it does have holiday-like status in many American households that is evident by the amount we spend preparing for the big game.

Even though we are spending billions of dollars on candy for the holiday, the number of families that plan to go door-to-door trick-or-treating is expected to be the 2nd lowest amount since the survey began in 2003. Is this driven by our obsession with limiting sugar and gluten; or concerns with nut allergies? No matter, whether you plan to take to the streets with the kids, visit a haunted house, or partake in a spooktacular event, there are plenty of Halloween festivities to enjoy.

Whatever you do, have a fun and safe holiday.

A. Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners. Founded in northern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 10 years.

“Before I came here, I was confused about this subject. Having listened to your lecture, I am still confused — but on a higher level.” ? Enrico Fermi

To say we live in uncertain times is an understatement. Yet, if you really think about it, has there ever really been a time of certainty? William Thomson (more famously known as Lord Kelvin) once said at the height of the highly confident Victorian era: “There is nothing new to be discovered in physics now, all that remains is more and more precise measurement.”

Of course, shortly thereafter Albert Einstein published his famous theories and turned physics on its head.

I told my wife the other day that as each election approaches I recall saying words to the effect that “I don’t ever recall such a horrible campaign.” Then the next one comes. It is worse, and causes even greater uncertainty than the last.

It appears I am not alone in that perception, and it seem this uncertainty and ambiguity is taking a toll on us. Brian Resnick, in an article for CNBC entitled “Election anxiety is real. A majority of Americans report ‘significant stress’ due to 2016,” reports on preliminary findings from the American Psychological Association’s recent “Stress in America” report.

Resnick writes: “Around half of people surveyed (52 percent) say the election ‘is a very or somewhat significant’ source of stress in their lives. The breakdown by party is about even: 59 percent of Republicans and 55 percent of Democrats say this election is causing them stress.”

Of interest is that the demographic groups with the highest reported “election stress” are at the opposite ends of the age spectrum: 59% of the so-called “Matures” (ages 71 and above) report somewhat/very significant stress levels while, surprisingly, 56% of “Millennials” (ages 19-37) report the same.

One would think this could be an indication of a tipping point where consumers concern with the uncertainty about the direction of the country would cause a pullback in spending, push up delinquencies and cause general economic mayhem.

Apparently, however, at least through the second quarter, the consumer continues to be remarkably robust and delinquencies remain at historic lows.

Quoting the ACA International article: “The composite ratio of delinquencies in eight closed-end loans (including for homes and vehicles) declined three basis points to a record low of 1.35 percent of all accounts, according to a news release from the ABA.”

So what gives?

According to James Chessen, the ABA’s Chief Economist, “Consumers have learned the lessons of the past and have taken a highly disciplined approach that allows them to consistently pay off or pay down debt.”

Quoting Chessen further: “With a steadily improving economy and wages on the rise, consumers’ ability to meet their financial obligations will only get stronger…We expect this trend of near-historically low delinquency levels to continue over the next several quarters.”

This is good news. That is, if consumers can keep their heads and meet their financial obligations with good financial discipline and maturity. History tells a different story however.

So why bring this up in a blog generally related to improving the collections process and maximizing our client’s debt recovery?

If history is any indication, just when things seem the most stable is the time when things can change quickly. Between the election, uncertainty about the economy, and how the Federal Reserve will impact growth, we continue to urge our clients to be vigilant and focused on debt recovery. Certainly, when times are good, debts can be much more efficient to collect. However, delaying or deferring the use of a quality debt collection agency like A. Alliance can have a negative effect on delinquent account collections if things suddenly turn south.

One thing is for certain: A. Alliance is here to help you in the best of times and the worst of times. Take advantage of our expertise to help you maximize your bad debt collections today.

A. Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners. Founded in northern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 10 years.

All the business owners I know are blessed by legions of loyal customers and clients who pay their bills on time without ever having to be reminded. Whether it’s the local stained glass studio, the podiatrist, or the septic service, these business owners offer their invaluable talents in exchange for a customer’s treasure. That’s what most of us would refer to as a fair trade (not to confused with the social movement to help producers in developing countries achieve better trading conditions).

But what happens when a customer does not part with their treasure, yet has taken advantage of the business owner’s talents? Business owners must be prepared to deal with people who ignore their financial responsibilities and create an unfair trade. This does happen to all business owners at some point in time—a customer or client is unwilling, unable or unavailable to pay that treasure they owe them. Since the majority of customers are never a payment problem, it’s easy to be unaccustomed and unprepared to solve any payment problems that may arise. So, what can a business owner do when a customer takes advantage of her talents, but will not pay for her talents in a timely manner?

The business owners I encounter in the collections industry are obviously partnering with UCS because they have already been treated unfairly by a customer or client and need help or a strategy to mitigate the unfairness. One of the most frequent questions I hear from a business owner upon our introduction is how to alleviate or minimize the negative impact of delinquent receivables. Unfortunately, I have no magic wand to alleviate this problem, but there are some principles and strategies to use when a business runs into payment problems.

Be personal. If a bill is being ignored at your office, make personal contact with the debtor.

Be knowledgeable. Find out if the customer or client is having financial problems. It’s important to be able to sort out whether it’s an ability to pay problem or an unwillingness to pay issue.

Be consistent. You need to handle all your billing activities consistently and in a timely manner. This makes the process fair for everyone and ensures that it happens.

Be creative. Encourage the customer to call you directly by stressing the importance of their account to your business, verbally or in writing. Using bold print for the number of days past due, or highlighting the amount due in red ink can be effective tools to prompt payments. Proposing a reasonable payment plan you both can live with can offer a win-win solution, so is offering multiple ways of paying. The easier it is for your clients to pay you, the better off you will be.

Be serious. Send your delinquent accounts to a collection agency. But before doing so, let your customers know that this will be your last request for payment before turning the account over. This lets your customers know you are serious and will often prompt payment from procrastinators.

Business owners did not start their business to be a bill collector (unless of course they started a collection agency) so none of this is anything most business owners want to do. However, due to circumstances beyond a business owner’s control, it becomes necessary from time to time. One way to be prepared for these circumstances is to hire A. Alliance to help bolster your bottom line. Our collection systems are efficient, and our people are honest with everyone. We will make a fair trade with you.

A. Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners. Founded in northern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 10 years